A deal was make on an oil block in south Sudan by the south Africa as part of a $1 billion investment in the country emerging from civil war.
Ezekiel Gatkuoth south Sudan oil minister says the south Africa countries signed a contract for an exploration and production in agreement for block B2, the second of such ever since the independence of south Sudan’s which commenced seven years ago in assuring that the deal will help restore oil output to levels of around 350,000 bpd.
Total SA held a license for Block B, a 120,000-km2 area the size of the U.S. state of Pennsylvania, but ceased activity in 1985, according to the ministry. The government in 2012 split the block into three licenses: B1, B2 and B3.
The main target of the South Sudan is to ensure the increase of crude oil production by using oil blocks that were stopped during its civil war.
South Africa in November reached an initial agreement to invest $1 billion in its oil sector and Energy Minister Jeff Radebe said in March the move is part of an effort by the country, which is reliant on imports to meet fuel demand, to secure crude supplies